Carbon emissions trading to reach $395 billion in 2014

OYSTER BAY, USA: The growing release of carbon dioxide into the atmosphere by man-made technologies and processes contributes to changes in global climate.

Skeptics call this “alarmism,” or argue that climbing temperatures are the result of a natural cycle of environmental adjustment, but the scientific community is united in saying that carbon emissions are making our planet hotter, and in calling for measures to reduce those emissions.

ABI Research examines the two leading market mechanisms for reducing carbon emissions in a new market study: 'Carbon Capture, Sequestration and Emissions Trading: The Outlook for Global Carbon Markets'.

* Carbon Capture and Sequestration (CCS) permits the heavy industries responsible for the greatest amount of carbon emissions to utilize new technologies to capture the CO2 they had been generating and store it safely for long periods.

* In carbon emissions trading, governmental or regulatory bodies issue carbon emitters a limited number of allowances (or offsets) that permit their legal release of carbon dioxide into the atmosphere; if emissions exceed an organization’s number of allowances, it must buy or trade for more, or face stiff penalties.

ABI Research forecasts the global carbon emissions trading market will reach $395 billion in 2014, more than three times the $118 billion in allowances traded in 2008.

Also, ABI Research anticipates that, from 2009 through 2014, $14.6 billion will be invested in 73 new CCS projects that will prevent 146 million tons of CO2 from entering the atmosphere.

Says Atakan Ozbek, the study’s author, "One of the major findings of the study is an increasing interconnection between CCS and the Carbon Emissions Trading market, as carbon credits accrued from CCS plants will be traded at carbon exchanges, generating additional revenue for CCS project developers."

He adds that carbon emission credits need to reach the lofty price of at least $40 per ton of CO2-equivalent for CCS projects to attain true commercial status. In addition, he says, "Effective policy and regulatory developments, as well as advances in both carbon capture and storage technologies, would need to be in place for CCS projects to be considered commercially ready."